Backflush, two trigger points, materials purchase and sale. Assume die same facts as in Problem 20-37. Assume that the second trigger point for the Acton Corporation is the sale—rather than the production—of finished units. Also, the Inventory Control account is confined solely to direct materials, whether these materials are in a storeroom, in work in process, or in finished goods. No conversion costs are inventoried. They are allocated atstandard cost to the units sold. Any under- or overallocated conversion costs are written offmonthly to Cost ofGoods fiold.

Required 1. Prepare summary journal entries for August, including the disposition ofunder- or overallo¬

cated conversion costs. Assume no direct materials variances.

2. Post the entries in requirement 1 to T-accounts for applicable Inventory Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods fiold.